CTO Realty Growth Acquires Houston Retail Center
The REIT acquired a 95%-occupied, 205,000-SF shopping center for a purchase price that represents $190 per square foot.
HOUSTON, TX – Publically-traded REIT, CTO Realty Growth has acquired a 205,000-square-foot retail center in the Houston suburb of Katy, TX for $39.1M. The purchase price equates to $190 per-square-foot.
The multi-tenant property, Price Plaza Shopping Center, is 95% occupied and includes four single and multi-tenant outparcels. The asset is anchored by Best Buy, Ross Dress for Less, dd’s Discounts and James Avery Artisan Jewelry, and is shadow-anchored by Home Depot, Sam’s Club and Walmart.
The shopping center is situated on 23.2 acres of land along the Interstate 10 Katy Freeway, near Houston’s Energy Corridor.
The company additionally assumed an existing $17.8 million mortgage secured by the property as part of the transaction. The mortgage bears a fixed interest rate of 4.1%, which matures in August 2026.
“We’re very pleased to be entering the Houston, TX market with our acquisition of Price Plaza Shopping Center,” says John P. Albright, president and CEO of CTO Realty Growth. “With its considerable growth driven by a high quality of life and thriving energy, life science and aerospace industries, Houston has long been a top target market for us.”
Albright adds, “Our acquisition of Price Plaza catapults Best Buy and Ross Stores into our top ten tenants list, and the property’s market positioning near Houston’s Energy Corridor, high-quality tenancy and overall productivity provides stable cash flow, an opportunity for long-term value appreciation, and an excellent addition to our growing, retail-focused portfolio.”
The company acquired the property through a 1031 like-kind exchange by using restricted cash generated from its previous dispositions.